Across Europe’s major wine-producing regions, a new trade dispute with the United States has sparked concern, the Associated Press reports.
The focus: a potential 200% tariff on European wine, Champagne, and other spirits, threatened by US President Donald Trump. The move comes in response to the European Union’s plan to impose a 50% tax on American whiskey, itself a reaction to US tariffs on foreign steel and aluminum.
The proposed tariff could have a significant effect on wine exports, particularly in France, Italy, and Spain—three of the largest suppliers of wine to the US Smaller producers, who rely heavily on the American market, fear that such a high tariff could make their products unaffordable and force them out of business.
David Levasseur, a third-generation winemaker in France’s Champagne region, expressed concern over the potential changes.
“It means I’m in trouble, big trouble,” he said.
Levasseur, like many European wine exporters, worries that the tariff could effectively shut down his sales in the US.
French wine and spirits exports to the US generate around €4 billion ($4.3 billion) annually. Gabriel Picard, head of the French Federation of Exporters of Wines and Spirits, called the proposed tariff “a hammer blow” to the industry.
“With 200% duties, there is no more market,” Picard stated.
While he acknowledged the need for European leaders to respond to trade pressures, he also recognized Trump’s approach to negotiations.
“We agree that Mr. Trump creates and likes to create contests of strength. We have to adapt to that,” he said.
For Italy, the US has become its largest wine market, with exports exceeding €2 billion ($2.2 billion) last year. High-end wines, particularly those served in upscale American restaurants, could be most affected.
Piero Mastroberardino, vice president of Italy’s national winemakers’ association Federvini, emphasized the challenge of replacing the US market. His winery’s premium Taurasi Radici red wine, ranked among the world’s best, sells for about $80 in the US—double its price in Italy. A 200% tariff could push it beyond what consumers are willing to pay.
Mastroberardino’s US partners increased orders by 20% in January in anticipation of possible tariffs, but he cautioned that temporary stockpiling would not offset long-term losses.
“It is in everyone’s interest to maintain a united front at the negotiating table,” he said.
Spain, another major wine exporter, has also seen strong growth in the US market, with exports rising 7% last year. Industry experts worry that the proposed tariffs could disrupt this momentum.
Begoña Olavarría, an analyst at the Interprofessional Wine Organization of Spain, expressed hope that the tariffs would not materialize.
“We don’t think they have much logic and we hope it never comes to fruition,” she said.
Producers of Cava, Spain’s signature sparkling wine, are particularly alarmed. The US is the second-largest market for Cava, and many businesses have spent years building their brands in the American market.
Mireia Pujol-Busquets, owner of Alta Alella Bodega near Barcelona, said her company risks losing sales of 25,000 bottles if the tariffs go into effect.
“We spent 10 years of effort opening the American market, finding distributors, and building a brand,” she said.
A 200% tariff, she added, would be “completely irrational.”
